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Ayayai Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: AYAYAT INC. Comparative Statement of Financial
Ayayai Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: AYAYAT INC. Comparative Statement of Financial Position December 31 2020 2019 Cash $ 52,805 $ 25.160 Accounts receivable 58,010 51.080 Inventory 40,030 60.150 Prepaid rent 5.320 4.180 Equipment 156.400 130.200 Accumulated depreciation-equipment ( 35.320D 25.180 Goodwill 20.000 52.000 Goodwill 20,000 52,000 Total assets $ 297,245 $ 297,590 Accounts payable $ 46,400 $ 40,200 Income tax payable 4,030 6,150 Salaries and wages payable 8,160 4,160 Short-term loans payable 8,010 10,080 Long-term loans payable 60,000 71,000 Common shares 130,000 130,000 Retained earnings 40.645 36,000 Total liabilities and shareholders' equity $ 297.245 297,590 Question 3 of 3 26. Income Statement Year Ending December 31, 2020 Sales revenue $ 340,280 Cost of goods sold 165.000 Gross margin 175,280 Operating expenses 120,000 Operating income 155.280 Interest expense $ 12,400 Impairment loss-goodwill 32.000 Gain on disposal of equipment 2.900 41.500 Income before income tax 13.780 Income tax expense 4.135 Net income $ 9,645 26.67 / 40 TIL Income tax expense 4,135 Net income $9.645 Additional information: 1. Dividends on common shares in the amount of $5,000 were declared and paid during 2020. Dividends paid are treated as finar 2. Depreciation expense is included in operating expenses, as is salaries and wages expense of $ 73,000. 3. Equipment with a cost of $ 30,000 that was 70% depreciated was sold during 2020. a Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signeg.-15,000 or in parenthesis eg. (15,000).) Ayayai Inc. Statement of Cash Flows (Indirect Method)
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